By Michael Makridakis, Jan Golaszewski, Dhanshuklal Vekaria, Yang Yang

On 6 March 2018, the Cayman Islands Court of Appeal handed down judgment in an appeal brought by Shanda, holding that a “minority discount” should be applied in assessing the fair value of a dissenter’s shareholding.

The judgment provides welcome certainty in take-private litigation in Cayman with the Court largely affirming the established valuation methodology of the Grand Court in conducting fair value assessments of companies under s.238 of the Companies Law.